PM approves foreign aid to improve power transmission network

September 11, 2015 | 10:00

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On September 11, the prime minister agreed in principle to a $317.36 million loan from the Asian Development Bank (ADB) and the German Development Bank (KfW) to finance the National Power Transmission Corporation’s (NPT) project to upgrade the Vietnamese power transmission network.

The prime minister asked the State Bank of Vietnam to act in collaboration with the relevant agencies to hasten the negotiation process in order to be able to sign the agreement and deploy the project as early as in 2015.

The project, having the total investment capital of $462 million, includes an ODA loan of $317.36 million and a reciprocal capital of $144.64 million. Of the $317.36 million loan provided in the form of ODA, the ADB committed to providing $238.69 million as the third instalment of its power transmission investment project for the 2011-2020 period and KfW will provide the further $78.67 million.

As part of the power transmission investment programme for the 2011-2020 period, the project aims to upgrade the national power transmission network, reduce the overload of the national power grid, meet the growing electricity demand of domestic industries and households as well as expand the transmission system to mountainous regions.

The project includes 15 small projects, which are expected to be deployed in 2015 and completed in 2018, to construct, expand and upgrade the 500 kilovolt (kV) and 220 kV transmission lines connecting 10 provinces throughout the country.

By By Kim Oanh

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